My family discovered they have 30 acres of mineral rights in Belmont county and XTO would like to lease them. We have a gas and oil attorney.
What can we expect after signing a lease?
What are royalty checks typically on 30 acres @ 20% in a 300 , 400, 500 yard area?
(if all 30 are within well area)
What are some problems you have experienced that we should worry about?
Can I buy a mansion in in Hollywood? or perhaps a small boat?
How long will they do this for?
$3200 is the offer per acre for 2 year w/ 2 year extension.
look the lease over REA:L good, read it 5 times, word for word. look for post production costs,look for not selling the o&g to affiliated companies. Your 20% may turn out to be 12% after deductions!contact the neighbors there who are already receiving royalties, some may just tell you. Some may act like you are infringing on their privacy. You're in a drygas area, but you'll have some ng.liquids and some oil. It will also depend on how many wells they drill on that pad,and how long the laterals are.And be prepared for them to possible drill ,then not complete the well/s until prices rebound.People in that area were getting 5/6 K for signing bonus,but that was then,this is now. Good Luck.
Thanks ski. I will look over the lease contract when I receive it tomorrow 5 X as you advised. None of my neighbors are receiving royalties yet, they are waiting on our property to drill a second well and complete the first one.
I will forward you the map once in a personal message so you can further evaluate the wells and locations if you would like.
Thanks again Boboski!
Try to find out what the other land owners received in lease terms including bonus. No reason to sell what you own short
When we signed in 2012 with XTO it was $5,000.00 per acre 5 year with 3 year extension, with 19% Royalties. The lawyer we dealt with was Larry Piergallini located in Tiltonsville Ohio he's the one that set up a huge group of land owners and revised the lease with XTO to meet our expectations. I am very delighted that XTO has contacted you to aquire a new lease my lease is due to renew in January of 2017 this gives me hope that even thought the prices are horrible rite now they obviously know something we don't. Good luck!
Tiffany , I believe XTO has the best possible technology to extract gas and oil. I follow global economics and spend a large portion of my days researching commodities and their future performance. I was put into this situation by luck and family. It is most likely in your best interest if XTO is talking with anyone from Belmont county. I understand that the smaller companies have contributed greatly to the counties , however when it comes to extraction, you may want the best technology possible and secret technology they may possibly own or will acquire. I may be wrong, anyone who wants to disagree can chime in and support their argument! : )
Rice Corp = 1.5 Billion dollar corp
XTO = 40 Billion dollar natural gas corporation
Exxonmobil = 325 Billion dollar corporation who bought XTO in 2012
I am very happy there is someone who really knows what's going on, if it wasn't for this site I wouldn't have a clue as to what is going on up in Ohio. My curiosity about your lease would also be to the factor as to which township you are in. The original land owners group consisted of Belmont and Jefferson county, and from the recorders office when i checked on my property in pease township it appears that in June XTO signed a contract with another company listing over 180 pieces of property with some type of drilling company. However i don't have any information on permits for wells etc... so that may be the reason for their interest the property for completing a tract and if that's the case and you can figure it out i would deffinately fight for a ton more money. I moved from Ohio to Louisiana going on 2 years in April due to the decline in the coal industry. Being down here on the gulf and seeing all the companies laying off with all the foreign oil selling super cheap, the main purpose of getting back on this site was to see if leases were being renewed and to find out what was going on up there. Also have a few acres in Harrison county that hasn't seen action yet leased with DPS penn which appears to be sold to Chesapeak.
The record is listed under the Belmont County Recorders site as number 201500008246 File date 7/13/15 Inst Date 6/15/15, Type (Amend Lease) Volume 000557 page 0003 with the number of pages being 194. If that would help you any further on your research.
I can email you charts that I have recorded to track progress of XTO , natural gas prices , global demand predictions etc...
I live for data and intelligence collection :)
that's awesome :) I will be following hot and heavy on your coat tails haha
purple dots are XTO only and do not show active wells. These are 90% of active wells in Ohio and inactive wells are within the same area , but not marked. I will post charts when this website works for me.
thank you that is rather helpful :)